1.​At independence Malaysia faced a big unemployment problem. To solve this we started with opening land for the landless. But development of land was not able to create enough jobs. It was therefore decided that Malaysia should industrialise. But Malaysia had no manufacturing expertise, no capital, no big corporations and no knowledge of the world market.

2.​Accordingly Malaysia decided to invite foreign investors. By this we meant that foreign manufacturing companies could set up labour intensive plants in Malaysia to produce for export. The Government would provide land and infrastructure and give tax holidays.

3.​ FDI solved most of our unemployment problem and enriched the country through industrialisation and inflow of capital. But a large amount of the capital was raised domestically.

4​But today Najib’s Government has given a new definition for Foreign Direct Investment. He regards foreigners bringing in money to buy land and develop towns and cities where their people would come and stay as foreign direct investment.

5.​The result benefits us not at all. Much of the most valuable land will now be owned and occupied by foreigners. In effect they will become foreign land.

6.​When we sold Singapore island to the Brits we must know that Singapore with all its wealth and development has become a foreign country. We cannot be proud of its achievement anymore than we can of the development of other countries in the world.

7.​Currently we are seeing huge tracts of land around Johor Bahru being sold to foreigners with no restriction on the sale of properties developed to them and mass immigration to take up residence in these new cities. One example is Forest City developed by a China-based company. Already thousands of units have been completed and sold to mainland Chinese. Bloomberg reports that 700,000 mainland Chinese would stay there. And the same agency pointed out that around Forest City, and therefore around Johor Bahru, there are 60 similar projects which can house more than one million people.

8.​Typically Chinese contractors prefer to bring in their own workers, architects and engineers. Few Malaysians would be employed in these projects. And few Malaysians would be able to buy the flats being built.

9.​ Actually our own people are quite capable of developing our land. They may not have the capital to invest immediately. The development may be slower and the scale may not be so big. The buyers will be local.

10.​It doesn’t need much imagination to see how much this benefit Malaysia, Malaysians and the Malaysian Government.

11.​But if we consider inflow of foreign capital to buy, develop and occupy our land as FDI, then we must expect huge areas of our land becoming foreign enclaves.

12.​In most countries foreigners are not allowed to buy land. They may be given contracts to build but they will be only contractors. Certainly what they build will not be for huge numbers of foreign people to occupy almost exclusively.

13.​But we are very generous. Even when we limit foreign buyers to buying only the expensive property but the Government, including the state Government would give exemption so that even low cost or affordable houses can be bought by foreigners.

14.​We claim that – these foreigners will not stay permanently in the enclaves they develop. We claim they will stay here only for the winter months.

15.​But we are kidding ourselves. Can we imagine hundreds of thousands of foreign people flying into the country to stay for three months and then flying out to their country to live there for nine months. Can we imagine for nine months these towns and cities will be empty – the shops, flats, offices, hotels, and recreation areas being closed. They will become ghost cities and towns. Empty roads and streets. Empty shopping complexes. It is absurd. Denying that 700,000 would occupy Forest City is self-deluding. No condition on who can stay in these houses has been stipulated.

16.​But some point out that the investment will come from many countries. Agreed. But most of them have not enough people to settle in foreign lands. They would be investing in industries to benefit from our low-cost labour. They would build their plants in the industrial estates we put up. They will not engage in huge housing development projects. They will not settle here.

17.​We can allow for foreign ownership of small plots of land. We can lease the land to them.

18.​But we cannot allow thousands of acres to be owned, developed and settled by foreigners. If we do that literally they would become foreign enclaves, troublesome for local authorities to manage. Indeed difficult even for the central Government to manage.

19.​We want our country to develop. Experience have shown that Malaysians can develop their own country. Their development is second to none. But their development would be for Malaysians.

20.​But during Najib’s China trip, he claimed that he succeeded in getting 150 billion Ringgit of FDI. No details were given. I am sure that most of this FDI would involve selling land, Government’s and 1MDB land to pay the debts which everyone knows have been incurred by them. We are going to see large chunks of Malaysia being developed by the foreign buyers and being occupied by them. Eventually they would demand for citizenship and they will participate in Malaysian politics including in elections. Whatever ideology they believe in might change the colour of Malaysian politics.

21.​As much as we cannot be proud of the development in parts of land which have become a foreign country, we cannot be proud of a magnificently developed Malaysia, occupied and owned by foreigners.

48 thoughts on “FDI”

I share DrM’s aversion about the Chinese property development business model, particularly their profiteering mechanism that have its focus on fiscal value and the ROI only. It will be a cultural disconfiguration as far the local people are concern.

Although, it is already happening in Penang at a smaller scale, the Chinese development projects in Johor are collosal, and as DrM correctly pointed out, would be an administrative and political migraine.

At its best Forest City will turn out to be a huge modern Chinatown for the Singaporeans, and a new HongKong for the foreign investors to park their money in and play with. It will be a home resort mall for the rich.

Johor state will prosper and be famous for a new foreign reason. There is nothing wrong with that, provided the Johor people will have a supporting role in it and benefit from this new colony.

139. Why pm madam theresa may stick to hard brexit even though it is only 52% vs 48% vote ratio?

140. When pm madam margaret thatcher on behalf of buckingham palace, her democratic parliament and her people could end british colonization and returned hongkong to mainland china in the theme of God Save The Queen, you think one day, taiwan will not unify with mainland china?

141. It is only a matter of time.

142. Do you think singapore returning to mainland johor is not possible?

143. It is a matter of time too as the late mr lyk already stated in his will that when the house is vacant, he wanted his children to work with the government, that is he wanted his children, the lee family, to serve the country like what he did in all his life

144. But will his children follow his footstep and run for pm, that, i believe as the caring father, he would definitely allow them to choose their own destiny,

145. For those politicians who think they can stroke brexit in this country with corruption, justice, race and religion conflicts, i sure hope they would stop immediately, and focus on rebuilding the country with good faith.

146. What happened in the past we cannot change.

147. What happen in the future, we definitely can improve and make it better.

148. It is high time for politics, and it is up to the political parties to play their parts.

149. As voters, we can only vote, itu saja.

150. The glass of water is half full?

151. The glass of water is half empty?

152. I choose the glass of water is half full, what about you?

153. Jangan lupa, sarawak is part of malaysia now.

154. Malaysia day is declared officially on Sept 16, and it is a public holiday shared by all states in malaysia.

155. Each of us makes mistakes because we are living in imperfect world.

I would like to comment the article posted by Puan Hajar. A point in the article read as follows :

“Take a look at the number of foreigners who have bought pro­perties in Singapore. Are the Singaporeans in that tiny island republic worried? No, they are not and they, in fact, welcome affluent expatriates there.”

As I have informed earlier I recently visited Singapore. The taxi drivers also commented their land being sold to foreigners. They complained to me how the Singaporean government are like businessmen, making huge profits from the sale. BUT the ordinary Singaporeans was not proud of it. They gained nothing from it. They could see foreigners by the thousands inhabit their land with their ferraries, posh, and Lambo. While the ordinary Singaporeans could not afford and suffer from the high cost of living.”

Tun does not want this happen to our country and this is why he voiced out. The development must benefit the rakyat and they should not be mere spectators.

EXCLUSIVE: JOHOR BARU: The Sultan of Johor has said he is “deeply offended and hurt” by the political spin used by certain politicians against mainland Chinese investments in the state, saying if this is left unchecked, it would drive away investors.

“Enough is enough. I have so far restrained myself from commenting on the controversy on Forest City generated by Dr Mahathir and his supporters.

“But Dr Mahathir has gone too far with his twisting of the issue. He is making allegations that 700,000 mainland Chinese will stay in JB, and that citizenships will be given away, and that huge tracts of land have been sold to the Chinese.

“He is giving the impression that Johor is surrendering land to the Chinese and that we are giving up our sovereignty, comparing even how we gave up Singapore to the British,” he said in an interview at Istana Bukit Serene here.

His Royal Highness said he did not wish to intervene in politics but he had to set the record straight as “the facts have been twisted by people with twisted minds and intentions”.

“Let me ask him this – Forest City is to be built on reclamation land and most of these units are condominiums. In simple language, these units are up in the air. They are strata units.

“I would like to ask Dr Mahathir if these foreign buyers can just take their apartments back home or carry off an inch of the reclaimed land.

Tun has his points regarding FDI. We have to be a bit critical. I am not sure the characteristics of overseas Chinese as laid out by the Australian professor are applicable to the current crop of Chinese from mainland China. Unless the Chinese from PRC are emigrated to Johor/Malaysia with uplifting of their roots, they do not share the same traits or characteristics of overseas Chinese stated. For one, PRC Chinese are more aggressive in their pursuit of their dreams. Some of them have very strong financial backing/background.

The economic model used in selling land and eventual development enterprise undertaken by the foreigners is an extractive one from Malaysia point of view. As pointed out by Tun, the locals do not enjoy the benefits as much as desired and the long term economic benefit to the locals is only consequential and not direct.

The peninsula Malaysia is only a small area relatively speaking. We should consider the impact and eventual difficulty faced by locals with so much land in the hands of foreigners. It is easier to sell land than embarking on another round of industrialisation or technological push in our industrial development. The current government should think a bit harder. Is it in the best interest of Malaysians? Can we do better than this?

Selling land and giving development projects to the Chinese, be it infrastructure or property, is easier relatively. China can plan for you and build everything for you. And they can do it. They provide the financing and.soft loans. With the current international credit ratings, Malaysia is hard pushed to secure favourable financing.

Many tend to agree with Tun on the consequences of this sort of FDI. How it will play out eventually should be new experience or lesson for us. We might be right.

87. Corruption, quarantorship, commission base project, money politics or lobby cost for future growth, government top position and political party power is so deep rooted thats no way you and i can change over night,karl.

88. If you really want to argue, one must start from malaysia boleh until today.

89. It is still come to my way or your way, karl.

90. Why always rhetoric politics of anti here and there?

91. It is fear mongeing, bogey man and shadow tactics that have been repeat again and again just to be the winning party of agree to disagree, nothing more.

92. Eventhough i know aku layak for br1m 2017, but i decided not to take because i believe this bantuan is only short term fiscal expenses.

93. If macc can go into melaka cm office, it means macc put their self interest above state government office bagai intruders.

94. The way macc act is also no difference from ganngsterism atau terrorism, have bomb, i mean, power to travel.

95. Macc too, just like umno, that is they bypass other departments too.

96. Ask yourself, are you comfortable to vote the political master behind macc?

97. When general election is called, we will know who has the majority votes who can dictate the federal budget.

98. The result is the same, that is right pocket go into left pocket.

99. Jika rugi, siapa bayar?

100. Sama2 tanggung lah unless you give up this country and migrate to other countries, then, no need to tanggung the beban.

DrM’s famous Look East policy is now following a new track that leads to Beijing, and not towards Tokyo anymore.

Najib’s unilateral move has upset many of DrM cronies in business who, fighting for financial survival, are now trapped between choosing their loyalty to DrM or following Najib in a fresh new direction.

Nothing short of sabotage, massive derailment and a new political engineering is required to set this train back to its original destination.

Long story short, Najib must undur (backtrack) and reset his control panel. No two ways about it.

Just imagine if Forest City was to be developed by a Japanese company, would DrM vehemently object to it?

75. I would say, the formula of kongsi the sovereign wealth is still the same, that is tit for tat.

76. The only difference is the land selling involves putrajaya government and international regulated body, bukan national parti politik tempatan for transforming the national income to be at par with developed country.

78. The rally of pas for ruu355, must be held in kota bahru, not dataran merdeka.

Allow me to point out some misaligned facts on Forest City Mega Project in Johor that Tun might unintentionally/unaware of, thus omitting it from your write-up. I derived the fact from: http://www.malaysiakini.com/news/292541

Your attack on Forest City Project had stir up the hornet’s nest in our RUKUN NEGARA Principles, namely principle Number 2: LOYALTY TO THE KING AND COUNTRY.
Your write-up can be misconstrued as disrespecting the Johor Sultan Ibrahim Sultan Iskandar and your attack on Mainland Chinese FDI by insinuating the potential political and security risk by the Mainland Chinese may impose on Malaysia can raise suspicion that we, the Malaysian Chinese are an ungrateful lots and disloyal to our beloved KING AND COUNTRY and are conspiring with Mainland China to take over Malaysia?

In my previous comment on New Year I wrote:
My SJK(C) Keat Hwa (H) in Alor Setar had taught me the RUKUN NEGARA and as such I am a true Malaysian in Heart and Soul.
I have to say to Tun, your write-up did not help your righteousness struggle and in fact gifted your political opponent with ammunition to fire back at you. Moreover I am hurt by your negative connotation on my loyalty to my beloved Malaysia. I had done my duty to my country and family with dignity and pride so please empathies with us we do not choice to be born a Chinese. But we cannot change the fact that we are Chinese Malaysian and as Chinese Malaysian we work extra hard to succeed in life.

Dear Tun Dr. Mahathir,
Allow me to post an article by Chan-Lui Lee, Ph.D. on how a Chinese Malaysian feels like just been born as Chinese:

Subject: Being Chinese?

The simple plain truth about the Chinese

This Chinese-Australian professor has a funny but true explanation about the Chinese people. Why do Chinese people work so hard to succeed in life?

Chinese people don’t go about bombing, terrorizing others and causing religious hatred. We live peacefully with everyone on Earth.

Here is the plain truth.

#1. There are over 1 billion of us on this earth. We are like Photostat copies of each other. You get rid of one, 5 magically appears (like ballot boxes). Yes, it is scary, especially for us. We acknowledge that we are replaceable, thus we are not particularly ‘special’. If you think you are smart, there are a few thousand more people smarter than you. If you think you are strong, there are a few thousand people stronger than you.

#2. We have been crawling all over this earth for far more centuries that most civilizations. Our DNA is designed for survival. We are like cockroaches. Put us anywhere on earth and we will make a colony and thrive. We survive on anything around us and make the best of it. Some keep migrating but others will stay and multiply.

#3. NOBODY cares if we succeed as individuals or not. But our families take pride in knowing we have succeeded. Yes, some will fail. We take nothing for granted. We don’t expect privileges to fall on our laps. No one owes us anything.

#4. We know we have nothing to lose if we try to succeed. Thus, we have no fear trying. That is why Chinese are addicted to gambling. We thrive on taking risks. All or nothing.

#5. From young we are taught to count every cent. What we take for granted like money management, I have found out recently, is not something other cultures practice at home with their children. It surprised me. But truth is not all societies or cultures teach their young this set of skills because it is rude to them. Yes, most of us can count because we are forced to and the logic of money is pounded into us from the beginning of time (when mama tells us how much she has spent on our milk and diapers)

#6. We acknowledge life cycles. We accept that wealth in a family stays for three generations (urban myth?). Thus, every 4th generation will have to work from scratch. I.e. first generation earns the money from scratch, second generation spends the money on education, third generation gets spoiled and wastes all the inheritance. Then we are back to square one. Some families hang on to their wealth a little longer than most.

#7. It is our culture to push our next generation to do better than the last. Be smarter. Be stronger. Be faster. Be more righteous. Be more pious. Be more innovative. Be more creative. Be richer. Be everything that you can be in this lifetime.

#8. Our society judges us by our achievements… and we have no choice but to do something worthwhile because Chinese New Year comes around every year and Chinese relatives have no qualms about asking you straight in your face – how much are you making? When was your last promotion? How big is your office? What car do you drive? Where do you stay? You have boyfriend? You have girlfriend? When are you getting married? When are you having children? When is the next child? When you getting a boy? Got maid yet? Does your company send you overseas? etc etc etc. It NEVER ENDS… so, we can’t stop chasing the illusive train – we are damned to a materialistic society. If you are not Chinese, consider yourself lucky!

#9. We have been taught from young that if you have two hands, two feet, two eyes, and a mouth, what are you doing with it? “People with no hands can do better than you!”

#10. Ironically, the Chinese also believe in giving back to save their wretched materialistic souls. Balance is needed. The more their children succeed in life, the more our parents will give back to society as gratitude for the good fortune bestowed on their children. Yes. That is true. And that is why our society progresses forward in all conditions.

Nobody pities us.
We accept that.

No one owes us anything.
We know that.

There are too many of us for charity to reach all of us.
We acknowledge that.

But that does not stop us from making a better life.
This lifetime.

Opportunity is as we make of it.
So, pardon us if we feel obliged to make a better place for ourselves in this country we call home.
It is in our DNA to progress forward for a more comfortable life.

But if history were to be our teacher, look around this globe.

Every country has a Chinatown (seriously) but how many government/countries are ‘taken’ over by the Chinese people.

Don’t be afraid of us overwhelming your majority, we are not looking to conquer.
If we have moved away from China and Chinese governed countries, we are NOT looking for another country to administer.
Our representatives are only there to look after our collective welfare. They are duty bound.
We prefer to blend in and enjoy the fruits of our labor.
We enjoy the company of like minded people of all races.
After all, we are only passing through a small period in the history of time… so, use our skills and we can all progress forward together.

Dear Tun Dr. Mahathir,
Come GE14 if you need me to campaign in Malay hinterland to tell them my story as Chinese Malaysian, a true Malaysian at heart and soul and a proud Kedahan. I am ready at your disposal anytime, just give me a call.

Some property development type of FDI is only self-serving kepada tuan tanah and does not gives benefits to other Malaysian if no jobs are created for Malaysian, no supplies of materials are bought from Malaysian companies and nothing are sold to Malaysian as the price is too expensive for the ordinary people to buy. Money circulation reduces and its effect on overall economic growth is minimized. Government job is to collect taxes from business. Because of this, tax collection is not optimal.

The Straits Times reported that government will wind up 1MDB. Debt to be serviced RM 22 billion. Additional debt that may be serviced (in dispute) RM 27 billion. Altogether, close to RM 50 billion.

Selling of land or equity in property development project had been 1MDB aims as it owns land, which is not liquid.

Monetization of asset delayed. 60% of capital injection by China Railroad Group of around RM 7.41 billion not yet materialized, and State owned China Mettalurgical corp buying into a stake in Penang Island of around RM 3 billion. Chinese state owned companies started to become doubtful about 1MDB sincerity. These will lead to the projects to generate income become terbengkalai.

Since, 1MDB debt will be taken over by government, Government debt would increase by RM 50 billion.

Meanwhile, there are signs that tertiary education quality in Malaysia would reduce (because facilities would be neglected and the contracts of world standing lecturers and researchers would not be continued), and public universities fees would increase. Malaysian public universities are facing austerities measures.

Tun , you should contest for the next PRU
You should be the President of BERSATU & the leader of Pakatan
You have the name as Najib will come with his Big bags of Dirty Money
To corrupt his Votes

Good Name ,Good Reputations Verses Dirty Money , Bad Intentions
As for Muhideen , Mukhliz & others they are not strong enough
It is just for this year a 92 yr old man Tun Mahathir Mohamed will track the record in the history of Mankind . You will be remembered Tun
Then after awhile Tun , you can pass the Baton to yr reliable candidate
Be sure to choose the right one , again do not let go yr string
Having said these , my prime concern
You have the right of yr health . Its your decision , simply its just a suggestions
As long as BERSATU will crown We will put every guilt of them behind Bars even AG Apandi
As AG Apandi is the man responsible that obstruct Justice

Again is the right decision of yours ,together the right of yr beautiful wife Datin Siti Hasmah .We will respect both yr decision
A Big Thank you Tun

60. Mr trump can picked the call from ms tsai, the president of roc china, taiwan, because he said it is not nice not to pick the call from a lady, simarly the central government of the people’s republic of china delivered back the drone made in usa without engaging war.

61. Trump’s first day at the oval office after being the elected president. First briefing by the cia, pentagon, fbi:-

Trump: we must destroy isis immediately, no delays.

Cia: we cannot do that, sir. We created them along with turkey, saudi and qatar.

Trump: the democrat created them.

Cia: we created isis, sir. You need them or else you would lose funding from natural gas lobby.

Trump: stop funding pakistan. Let india deal with them.

Cia: we cant do that.

Trump: why is that?

Cia: india will cut balochistan out of pak.

Trump: i dont care.

Cia: india will have peace in kashmir. They will stop buying our weapons. They will become superpower. We have to fund pakistan to keep india in kashmir.

Trump: you have to destroy the taliban.

Cia: sir, we cant do that. We created the taliban to keep russia in check during the 80s. Now they are keeping pakistan busy and away from their nukes (nukes mean informal).

Trump: we have to destroy terror sponsoring regimes in the middle east. Let us start with the saudi.

Cia: we cant do that. We created those regimes in the middle east because we wanted their oil. We cant have democracy there, otherwise their people will get that oil-and we cannot let their people go own it.

Trump: then let us invade iran.

Pentagon: we cannot do that either, sir.

Trump: why not?

Cia: we are talking to them, sir.

Trump: what? Why?

Cia: we want our stealth drones back. If we attack them, russia will obliterate (means destroy) us as they did to our buddy isis in syria. Besides we need iran to keep israel in check.

Trump: then let us invade iraq again.

Cia: sir, our friends(isis) are already occupying 1/3 of iraq.

Trump: why not the whole iraq?

Cia: we need the shi’te govt of iraq to keep isis in check.

Trump: i am banning muslims from entering us.

Fbi: we cant do that.

Trump: why not?

Fbi: then our own pupulation will become fearless.

Trump: i am deporting all illegal immigrants to south of the border.

Border patrol: you cant do that sir.

Trump: why not?

Border patrol: if they’re gone, who will build the wall.

Trump: i am banning H1B visa (The H-1B is a non-immigrant visa in the United States under the Immigration and Nationality Act, section 101(a)(15)(H). It allows U.S. employers to temporarily employ foreign workers in specialty occupations)

Uscis: you cannot do that.

Trump: why?

Chief of staff: if you do so, we’ll have to outsource white house operation to banglore, which is india (it means american do not want to work in white house)

Trump: (sweating profusely by now): what the hell should i do as president???

64. Kita dah dianakyatimkan berpuluh2 tahun, therefore, any malay who become the pm, they still need to serve the people including kaum cina in general to get votes, gaji, allowances and other benefits.

I’m about to give some crazy idea about the PM choice for pakatan. To me, the PM to be should be some one who can fight Najib head on. And of course bring the most votes to Pakatan. The PM to be should not be someone who is PM on behalf of someone because that someone is in prison.

How about if you become PM once again Tun? I think you would have the charisma and the leadership to lead pakatan. Many of the rakyat long for Malaysia to be when you were PM.

We were proud Malaysians, everywhere in the world people knew Malaysia and they knew you. Now Malaysia is the most corrupt.

Please Tun, for you and the Pakatan allies to consider since Anwar is in prison. At least to unseat Najib as PM.

I know you have retired but I think you have the best chance among the other PM candidates of beating Najib.

Tun M…the other point which I humbly wanted to highlight here is…Thief Najis planned to eat a chunk out those China loan amount to use in next GE.
His corrupted family and his slaves with tongues out are with less bran now.

4​But today Najib’s Government has given a new definition for Foreign Direct Investment. He regards foreigners bringing in money to buy land and develop towns and cities where their people would come and stay as foreign direct investment.

For the country to sustain its attractiveness in grabbing FDI, first of all, we need to improve the civil workforce quality and efficiency. Next, we must curb corruption. Corruption leads to heavy hidden cost of running business, and siphoning of country’s resources into individuals’ pocket.

Please be back to the old days where our politicians and leaders always put the nation’s interest above all.

50. Therefore, the gigitan bunyi of anti-chinese sentiment is a blessing.

52. It is better off to let lks and lge to do the donkey, i mean, the shadow job now.

53. Mca must feel blessed, and jangan kecil hati.

54. Why?

55. Because mca is the only political party that is always chinese comes first, just like umno, malay comes first, mic, hindu comes first, supp sabah comes first, and pbb, sarawak comes first so on and so on.

With the current weak RM performance, coupled with high corruption incidence among the civil workforce, it is very hard for the country to have FDI as foreigners fear forex loss in trade and heavy hidden cost of running business.

And, with Donald Trump taking over US Presidency, likely some US MNCs will pull back their investments in this country.

Today, we need to look at the fact of China still pouring in investments as a positive thing. But, of course, we do not want them to merely buy land and settle down. We want productive investments that carry the effects of creating jobs and revenue for the Government in the form of tax.

23. Tdm too has his basic right to say what he wants, just like tengku razaleigh and tun musa hitam, bukan, karl?

24. By the end of the day, it is still come back on how the local political parties in playing with this number game to gain votes, atau dengan cara of i help you, you help me atau i need you, you need me, i scratch your back, you scratch my back, nepotism, cronism, coalition, allies, harapan dan sebagainya locally.

25. From there, all states’ voters will vote serentak including sabah, and of course all our states’ sultan are watching closely because they are part of us that form malaysia.

28. Myr jatuh is within expectation, therefore, panic and confident crisis across the region is not as teruk and alarming like what we have gone through before because we were unprepared and not aware of the consequences to our future growth and progress.